Baker McKenzie has achieved a groundbreaking milestone in facilitating the world’s first cross-border repo and natively issued digital bond on a public blockchain for DBS Bank, UBS AG and SBI as part of the Monetary Authority of Singapore’s Project Guardian.
The initiative aimed to test the feasibility of applications in asset tokenisation and decentralised finance (DeFi) while managing potential risks. The successful live pilot involved issuing, repurchasing, and redeeming digitally native Swiss-law securities, employing stablecoins issued under Japanese regulations and tokenised certificates of deposits under Swiss law.
The cross-border Baker McKenzie team, led by Stephanie Magnus and Yves Mauchle, showcased the potential for real-time global digital asset transactions, opening avenues for the banking and asset management industries to harness the benefits of asset tokenisation.
Magnus said, “We are truly honoured to be part of this monumental transaction, the first of its kind for the financial industry. The successful live pilot demonstrates that the execution of real-time global digital assets transactions is now a reality, paving the way for the global banking and asset management industries to harness the vast potential of asset tokenisation. We are grateful for DBS Bank, UBS AG and SBI for placing their trust in our team in navigating the regulatory intricacies around a real-time transaction across multiple jurisdictions.”
Project Guardian is a collaborative initiative in the financial industry that currently involves 15 international financial institutions including DBS, UBS, SBI, the Financial Services Agency of Japan, the Swiss Financial Market Supervisory Authority and the Financial Conduct Authority in the UK.
